AUMENTO DA TAXA SELIC SÓ TROUXE BENEFÍCIOS PRO SUPERMAN WAY OF LIFE? SAMY DANA EXPLICA

In my opinion, it seems like an obvious trend that all Fed Governors are challenged by the markets whenever the Chairman gets hot on the seat, where the Federal Reserve at this time in history chose to avoid providing support to Lehman as it could gravely cost the federal government to be in a financial position, after nationalising Freddie Mac and Fannie Mae. If the Federal Reserve is to continue taking on AIG and turning them into a public sector, it may be worth to rethink about the credit rating of the US Treasuries, as many investors may consider the risk of default on Treasuries. With reference to the article written by Morgan Stanley, where they quoted from Japan and Germany back in the 90s, that the explosion of both governments’ debt was followed by a peak out and then a decline of private housedholds’ indebtedness, and with the expansion of the public sector’s balance sheet was mirrored by a contraction in the private sector balance sheet (always relative to GDP).

Lehman Brothers is going bankrupt. Bear Sterns folded a few months ago. What’s next? Where does it all stop? To me, a buyout of the Federal Reserve would be the best answer. If the U.S. government would buy out the Federal Reserve with and new U.S. dollar, debt and interest free, all our problems of mortgages, war, poverty would all be resolved.